Problem 7-3A Special journals, subsidiary ledgers, and schedule of accounts payable-perpetual LO C3, P1, P2
Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).
| Apr. | 2 | Purchased $15,800 of merchandise on credit from Noth Company, invoice dated April 2, terms 2/10, n/60. | ||
| 3 | Sold merchandise on credit to Page Alistair, Invoice No. 760, for $5,600 (cost is $2,800). | |||
| 3 | Purchased $1,590 of office supplies on credit from Custer, Inc. Invoice dated April 2, terms n/10 EOM. | |||
| 4 | Issued Check No. 587 to World View for advertising expense, $850. | |||
| 5 | Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $9,300 (cost is $6,600). | |||
| 6 | Received an $70 credit memorandum from Custer, Inc., for the return of some of the office supplies received on April 3. | |||
| 9 | Purchased $10,850 of store equipment on credit from Hal’s Supply, invoice dated April 9, terms n/10 EOM. | |||
| 11 | Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $12,200 (cost is $6,800). | |||
| 12 | Issued Check No. 588 to Noth Company in payment of its April 2 invoice less the discount. | |||
| 13 | Received payment from Page Alistair for the April 3 sale less the discount. | |||
| 13 | Sold $6,300 of merchandise on credit to Page Alistair (cost is $3,300), Invoice No. 763. | |||
| 14 | Received payment from Paula Kohr for the April 5 sale less the discount. | |||
| 16 | Issued Check No. 589, payable to Payroll, in payment of sales salaries expense for the first half of the month, $10,200. Cashed the check and paid employees. | |||
| 16 | Cash sales for the first half of the month are $52,040 (cost is $44,400). (Cash sales are recorded daily from cash register data but are recorded only twice in this problem to reduce repetitive entries.) | |||
| 17 | Purchased $13,100 of merchandise on credit from Grant Company, invoice dated April 17, terms 2/10, n/30. | |||
| 18 | Borrowed $64,000 cash from First State Bank by signing a long-term note payable. | |||
| 20 | Received payment from Nic Nelson for the April 11 sale less the discount. | |||
| 20 | Purchased $1,160 of store supplies on credit from Hal’s Supply, invoice dated April 19, terms n/10 EOM. | |||
| 23 | Received a $900 credit memorandum from Grant Company for the return of defective merchandise received on April 17. | |||
| 23 | Received payment from Page Alistair for the April 13 sale less the discount. | |||
| 25 | Purchased $11,775 of merchandise on credit from Noth Company, invoice dated April 24, terms 2/10, n/60. | |||
| 26 | Issued Check No. 590 to Grant Company in payment of its April 17 invoice less the return and the discount. | |||
| 27 | Sold $3,170 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,690). | |||
| 27 | Sold $8,600 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,955). | |||
| 30 | Issued Check No. 591, payable to Payroll, in payment of the sales salaries expense for the last half of the month, $10,200. | |||
| 30 | Cash sales for the last half of the month are $72,500 (cost is $59,600). |
Assume that Wiset Co. uses the perpetual inventory system.
Required:
1-a. Review the April transactions of Wiset
Company and enter those transactions that should be journalized in
the purchases journal.
1-b. Review the April transactions of Wiset
Company and enter those transactions that should be journalized in
the cash disbursements journal.
1-c. Prepare a general journal. Review the April
transactions of Wiset Company and enter those transactions that
should be journalized in the general journal.
2 & 3. Enter the March 31 balances of Cash
($84,000), Inventory ($130,000), Long-Term Notes Payable
($114,000), and B. Wiset, Capital ($100,000). Post the total
amounts from the journal in the following general ledger accounts
and in the accounts payable subsidiary ledger accounts for Hal’s
Supply, Noth Company, Grant Company and Custer, Inc.
4-a. Prepare a trial balance.
4-b. Prepare a schedule of accounts payable.
Review the April transactions of Wiset Company and enter those transactions that should be journalized in the purchases journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the cash disbursements journal. Prepare a general journal. Review the April transactions of Wiset Company and enter those transactions that should be journalized in the general journal. Enter the March 31 balances of Cash ($84,000), Inventory ($130,000), Long-Term Notes Payable ($114,000), and B. Wiset, Capital ($100,000). Post the total amounts from the journal in the following general ledger accounts and in the accounts payable subsidiary ledger accounts for Hal’s Supply, Noth Company, Grant Company and Custer, Inc. Prepare a trial balance. Prepare a schedule of accounts payable.
In: Accounting
The accountant for Becker Company wants to develop a balance sheet as of December 31, 2016. A review of the asset records has revealed the following information:
| a. | Asset A was purchased on July 1, 2014, for $40,000 and has been depreciated on the straight-line basis using an estimated life of six years and a residual value of $4,000. |
| b. | Asset B was purchased on January 1, 2015, for $79,200. The straight-line method has been used for depreciation purposes. Originally, the estimated life of the asset was projected to be six years with a residual value of $7,200; however, at the beginning of 2016, the accountant learned that the remaining life of the asset was only three years with a residual value of $2,400. |
| c. | Asset C was purchased on January 1, 2015, for $58,000. The double-declining-balance method has been used for depreciation purposes, with a four-year life and a residual value estimate of $5,000. |
Required:
| 1. | Assume that these assets represent pieces of equipment. Calculate the acquisition cost, accumulated depreciation, and book value of each asset as of December 31, 2016. |
| 2. | How would the assets appear on the balance sheet on December 31, 2016? |
| 3. | Assume that Becker Company sold Asset B on January 2, 2017, for $32,600. Calculate the amount of the resulting gain or loss and prepare the journal entry for the sale. Where would the gain or loss appear on the income statement? |
The accountant for Becker Company wants to develop a balance sheet as of December 31, 2016. A review of the asset records has revealed the following information:
| a. | Asset A was purchased on July 1, 2014, for $40,000 and has been depreciated on the straight-line basis using an estimated life of six years and a residual value of $4,000. |
| b. | Asset B was purchased on January 1, 2015, for $79,200. The straight-line method has been used for depreciation purposes. Originally, the estimated life of the asset was projected to be six years with a residual value of $7,200; however, at the beginning of 2016, the accountant learned that the remaining life of the asset was only three years with a residual value of $2,400. |
| c. | Asset C was purchased on January 1, 2015, for $58,000. The double-declining-balance method has been used for depreciation purposes, with a four-year life and a residual value estimate of $5,000. |
Required:
| 1. | Assume that these assets represent pieces of equipment. Calculate the acquisition cost, accumulated depreciation, and book value of each asset as of December 31, 2016. |
| 2. | How would the assets appear on the balance sheet on December 31, 2016? |
| 3. | Assume that Becker Company sold Asset B on January 2, 2017, for $32,600. Calculate the amount of the resulting gain or loss and prepare the journal entry for the sale. Where would the gain or loss appear on the income statement? |
In: Accounting
13. Classifying Costs The following is a list of costs incurred by several businesses: Classify each of the following costs as product costs or period costs. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Costs Classification a. Cost of fabric used by clothing manufacturer b. Maintenance and repair costs for factory equipment c. Rent for a warehouse used to store raw materials and work in process d. Wages of production quality control personnel e. Oil lubricants for factory plant and equipment f. Depreciation of robot used to assemble a product g. Travel costs of marketing executives to annual sales meeting h. Depreciation of copying machines used by the Marketing Department i. Fees charged by collection agency on past-due customer accounts j. Electricity used to operate factory machinery k. Maintenance costs for factory equipment l. Pens, paper, and other supplies used by the Accounting Department in preparing various managerial reports m. Charitable contribution to United Fund n. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules o. Fees paid to lawn service for office grounds upkeep p. Cost of sewing machine needles used by a shirt manufacturer q. Cost of plastic for a telephone being manufactured r. Telephone charges by president’s office s. Cost of 30-second television commercial t. Surgeon’s fee for heart bypass surgery u. Depreciation of tools used in production v. Wages of a machine operator on the production line w. Salary of the vice president of manufacturing operations x. Factory janitorial supplies
In: Accounting
In: Accounting
JustKitchens Inc. provides services to restaurants and hotels. The company supplies paper products, tableware, cookware, restaurant and kitchen equipment, and cleaning supplies. On January 2, 2017, Just- Kitchens enters into a contract with a local restaurant chain to provide its services for 3 years at a cost of $10,000 per year. The restaurant chain pays the total contract fee on January 2, 2017. JustKitchens’s stand-alone selling price is also $10,000 per year.
After 2 years, the restaurant asks to modify the contract. On January 2, 2019, the companies agree to reduce the fee for the third year to $9,000 in exchange for extending the contract for 2 additional years at a fee of $11,000 per year. This modification is agreed to by both parties, and on that date the restaurant chain pays for the additional 2 years of service and deducts $1,000 for the adjustment to the original contract. The $11,000 fee for the additional years is the same as JustKitchens’s stand-alone price.
| Required: | |
| 1. | How should JustKitchens account for the contract modification? |
| 2. | Prepare the journal entries that JustKitchens would make over the life of the contract. |
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| JustKitchens Inc. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
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How should JustKitchens account for the contract modification?
The contract modification should be accounted for with a cumulative catch-up adjustment or prospectively?
Prepare the journal entries that JustKitchens would make over the life of the contract. Assume all annual year-end entries are made on December 31. Additional Instruction
PAGE 2017 (4 Journal Entries) PAGE 2018 (2 Journal Entries) PAGE 2019 (4 Journal Entries) PAGE 2020 (2 Journal Entries) PAGE 2021 (2 Journal Entries)
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In: Accounting
4)
Using the key below,
| Cash | Accounts receivable | Inventory | Equipment | Accumulated depreciation | Accounts payable | Capital stock | Retained earnings | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 |
where should a corporation record depreciation on equipment?
15 and 10
9 and 16
7 and 16
15 and 8
5)
Using the key below,
| Cash | Accounts receivable | Inventory | Equipment | Accumulated depreciation | Accounts payable | Capital stock | Retained earnings | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 |
where should a corporation record paying for advertising for the period?
15 and 2
15 and 12
1 and 16
11 and 16
6)
Using the key below,
| Cash | Accounts receivable | Inventory | Equipment | Accumulated depreciation | Accounts payable | Capital stock | Retained earnings | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 |
where should a corporation record paying for cash dividends?
15 and 2
13 and 12
1 and 16
13 and 2
In: Accounting
Crown Co. can produce two types of lamps, the Enlightner and Foglighter. The data on the two lamp models are as follows:
| Enlightner | Foglighter | |||||||
| Sales volume in units | 570 | 470 | ||||||
| Unit sales price | $ | 300 | $ | 400 | ||||
| Unit variable cost | 200 | 240 | ||||||
| Unit contribution margin | $ | 100 | $ | 160 | ||||
It takes one machine hour to produce each product. Total fixed costs for the manufacture of both products are $125,000. Demand is high enough for either product to keep the plant operating at maximum capacity.
Assuming that sales mix in terms of dollars remains constant, what is the breakeven point in dollars? (Round intermediate calculations to 4 decimal places and final answer up to the nearest whole number.)
Multiple Choice
$383,459.
$213,089.
$401,237.
$339,489.
$1,040,391.
In: Accounting
The comparative balance sheets for 2018 and 2017 are given below
for Surmise Company. Net income for 2018 was $76 million.
| SURMISE COMPANY Comparative Balance Sheets December 31, 2018 and 2017 ($ in millions) |
||||||||
| 2018 | 2017 | |||||||
| Assets | ||||||||
| Cash | $ | 22 | $ | 31 | ||||
| Accounts receivable | 87 | 102 | ||||||
| Less: Allowance for uncollectible accounts | (23 | ) | (5 | ) | ||||
| Prepaid expenses | 18 | 14 | ||||||
| Inventory | 129 | 109 | ||||||
| Long-term investment | 122 | 85 | ||||||
| Land | 94 | 94 | ||||||
| Buildings and equipment | 386 | 260 | ||||||
| Less: Accumulated depreciation | (131 | ) | (104 | ) | ||||
| Patent | 23 | 25 | ||||||
| $ | 727 | $ | 611 | |||||
| Liabilities | ||||||||
| Accounts payable | $ | 17 | $ | 38 | ||||
| Accrued liabilities | 1 | 18 | ||||||
| Notes payable | 44 | 0 | ||||||
| Lease liability | 116 | 0 | ||||||
| Bonds payable | 62 | 126 | ||||||
| Shareholders’ Equity | ||||||||
| Common stock | 67 | 50 | ||||||
| Paid-in capital—excess of par | 257 | 205 | ||||||
| Retained earnings | 163 | 174 | ||||||
| $ | 727 | $ | 611 | |||||
Required:
Prepare the statement of cash flows of Surmise Company for the year
ended December 31, 2018. Use the indirect method to present cash
flows from operating activities because you do not have sufficient
information to use the direct method. You will need to make
reasonable assumptions concerning the reasons for changes in some
account balances. A spreadsheet or T-account analysis will be
helpful. (Hint: The right to use a building was acquired with a
seven-year lease agreement. Annual lease payments of $10 million
are paid at January 1 of each year starting in 2018.)
(Enter your answers in millions (i.e., 10,000,000 should be
entered as 10). Amounts to be deducted should be indicated with a
minus sign.)
In: Accounting
On January 1, 2018, Nguyen Electronics leased equipment from
Nevels Leasing for a four-year period ending December 31, 2021, at
which time possession of the leased asset will revert back to
Nevels. The equipment cost Nevels $839,368 and has an expected
economic life of five years. Nevels expects the residual value at
December 31, 2021, will be $115,000. Negotiations led to the lessee
guaranteeing a $170,000 residual value.
Equal payments under the lease are $215,000 and are due on December
31 of each year with the first payment being made on December 31,
2018. Nguyen is aware that Nevels used a 5% interest rate when
calculating lease payments. (FV of $1, PV of $1, FVA of $1, PVA of
$1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s)
from the tables provided.)
Required:
1. Prepare the appropriate entries for both
Nguyen and Nevels on January 1, 2018, to record the lease.
2. Prepare all appropriate entries for both Nguyen
and Nevels on December 31, 2018, related to the lease.
In: Accounting
In your initial post, briefly research career opportunities that require knowledge or experience with managerial accounting. List at least two potential positions (including a link to the job posting or job description) that you personally found to be interesting or surprising, and explain why they were noteworthy to you.
In: Accounting
The following financial statements apply to Benson Company:
| Year 4 | Year 3 | ||||||
| Revenues | |||||||
| Net sales | $ | 211,000 | $ | 176,600 | |||
| Other revenues | 8,300 | 6,300 | |||||
| Total revenues | 219,300 | 182,900 | |||||
| Expenses | |||||||
| Cost of goods sold | 125,100 | 101,600 | |||||
| Selling expenses | 20,700 | 18,700 | |||||
| General and administrative expenses | 10,500 | 9,500 | |||||
| Interest expense | 1,800 | 1,800 | |||||
| Income tax expense | 19,000 | 16,600 | |||||
| Total expenses | 177,100 | 148,200 | |||||
| Net income | $ | 42,200 | $ | 34,700 | |||
| Assets | |||||||
| Current assets | |||||||
| Cash | $ | 4,500 | $ | 6,800 | |||
| Marketable securities | 3,000 | 3,000 | |||||
| Accounts receivable | 35,700 | 30,600 | |||||
| Inventories | 101,300 | 94,400 | |||||
| Prepaid expenses | 4,800 | 3,800 | |||||
| Total current assets | 149,300 | 138,600 | |||||
| Plant and equipment (net) | 105,100 | 105,100 | |||||
| Intangibles | 20,800 | 0 | |||||
| Total assets | $ | 275,200 | $ | 243,700 | |||
| Liabilities and Stockholders’ Equity | |||||||
| Liabilities | |||||||
| Current liabilities | |||||||
| Accounts payable | $ | 38,600 | $ | 55,200 | |||
| Other | 15,200 | 15,700 | |||||
| Total current liabilities | 53,800 | 70,900 | |||||
| Bonds payable | 64,500 | 65,500 | |||||
| Total liabilities | 118,300 | 136,400 | |||||
| Stockholders’ equity | |||||||
| Common stock (45,000 shares) | 113,600 | 113,600 | |||||
| Retained earnings | 43,300 | (6,300 | ) | ||||
| Total stockholders’ equity | 156,900 | 107,300 | |||||
| Total liabilities and stockholders’ equity | $ | 275,200 | $ | 243,700 | |||
Required
Calculate the following ratios for Year 3 and Year 4. Since Year 2
numbers are not presented do not use averages when calculating the
ratios for Year 3. Instead, use the number presented on the Year 3
balance sheet.
JUST NEED *****F-N*****
a. Net margin. (Round your answers to 2
decimal places.)
b. Return on investment. (Round your
answers to 2 decimal places.)
c. Return on equity. (Round your answers
to 2 decimal places.)
d. Earnings per share. (Round your answers
to 2 decimal places.)
e. Price-earnings ratio (market prices at the end
of Year 3 and Year 4 were $5.96 and $4.80,
respectively).(Round your intermediate calculations and
final answers to 2 decimal places.)
f. Book value per share of common stock.
(Round your answers to 2 decimal places.)
g. Times interest earned. Exclude extraordinary
income in the calculation as they cannot be expected to recur and,
therefore, will not be available to satisfy future interest
payments. (Round your answers to 2 decimal
places.)
h. Working capital.
i. Current ratio. (Round your answers to 2
decimal places.)
j. Quick (acid-test) ratio. (Round your
answers to 2 decimal places.)
k. Accounts receivable turnover. (Round
your answers to 2 decimal places.)
l. Inventory turnover. (Round your answers
to 2 decimal places.)
m. Debt-to-equity ratio. (Round your
answers to 2 decimal places.)
n. Debt-to-assets ratio. (Round your
answers to the nearest whole percent.)
| year4 | year3 | ||
| a | net margin | ||
| b | return on investment | ||
| c | return on equity | ||
| d | earnings per share | ||
| e | price earnings ratio | ||
| f | book value | ||
| g | interest earned | ||
| h | working capital | ||
| i | current ratio | ||
| j | quick (acid test) ratio | ||
| k | accounts receivable turnover | ||
| l | inventory turnover | ||
| m | debt to equity ratio | ||
| n | debt to assets ratio |
In: Accounting
Brislin Company has four operating divisions. During the first quarter of 2020, the company reported aggregate income from operations of $193,000 and the following divisional results.
| Division | |||||||||
| I | II | III | IV | ||||||
| Sales | $250,000 | $198,000 | $496,000 | $443,000 | |||||
| Cost of goods sold | 205,000 | 189,000 | 297,000 | 255,000 | |||||
| Selling and administrative expenses | 70,000 | 63,000 | 61,000 | 54,000 | |||||
| Income (loss) from operations | $ (25,000) | $ (54,000) | $138,000 | $134,000 | |||||
Analysis reveals the following percentages of variable costs in
each division.
| I | II | III | IV | ||||||||||
| Cost of goods sold | 69 | % | 89 | % | 80 | % | 74 | % | |||||
| Selling and administrative expenses | 37 | 61 | 51 | 58 |
Discontinuance of any division would save 50% of the fixed costs
and expenses for that division.
Top management is very concerned about the unprofitable divisions
(I and II). Consensus is that one or both of the divisions should
be discontinued.
(a)
Compute the contribution margin for Divisions I and II. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
| Division I | Division II | ||||
| Contribution margin | $ | $ |
b
) Prepare an incremental analysis concerning the possible discontinuance of Division I. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
C)Prepare an incremental analysis concerning the possible discontinuance of Division II. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
D) Prepare a columnar condensed income statement for Brislin Company, assuming Division II is eliminated. Division II’s unavoidable fixed costs are allocated equally to the continuing divisions. (Round answers to 0 decimal places, e.g. 1525. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
In: Accounting
Write historical background, structure, functions, features,
advantages of following international financial institutions
IMF
WB
SBP
OIC
SAARC
In: Accounting
"Please can I get a feedback on this discussion post below" Can I get it in 2 hours please .thanks
Tesla is a company recently in the news for a conflict of interest between the SEC and the CEO Elon Musk due to an interest to bring the company private by the CEO who shared on Twitter his short term plans. Production issues, a number of layoffs and the increasing demand for the electric vehicles were expressed by the CEO as reasons to bring the company private that would allow the company to restructure its company internally. The company has since rescinded its position remaining as a public company. The SEC stated that it was swaying investors by stating that the company would do so when it reached a stock price of $420 forcing investors to make a decision or artificially driving the stock price to the sale price in order to bring the company private faster. Elon Musk has previously tweeted about its stock price in terms of its standing in the market however this is the first where the market has reacted to his tweets negatively. Possible solutions to the situation would be to address investors by other measures in addition to Twitter. Twitter being a social network for CEO’s to interact with customers and investors directly however a more formal approach might have been ideal in this situation.
In: Accounting